New Residential Construction

Yesterday, the Census Department released the New Residential Construction report for June.

New Home Sales: Sales of new single-family houses in June 2024 were at a seasonally adjusted annual rate of 617,000. This is 0.6 percent (±14.6 percent) below the revised May rate of 621,000 and is 7.4 percent (±15.2 percent) below the June 2023 estimate of 666,000.

Sales Price: The median sales price of new houses sold in June 2024 was $417,300. The average sales price was $487,200.

For Sale Inventory and Months' Supply: The seasonally-adjusted estimate of new houses for sale at the end of June was 476,000. This represents a supply of 9.3 months at the current sales rate.

Note the margins of error in this report, ~15 percent.

New Homes For Sale By Stage of Construction

Allegedly there are 476,000 homes for sale at a seasonally-adjusted annualized rate (SAAR).

However, 100,000 of them have not been started and perhaps won't for years.

There are 376,000 homes that have been started, of which 102,000 have been completed. It's the most since the middle of the great recession.

Started and completed homes are much more of a commitment than holding vacant land, and it's happening just as the economy is slowing rapidly.

New Home Sales Drop Slightly

Yesterday, I reported New Home Sales Drop Slightly, Economists Expected a 3.4 Percent Rise